ESG Quantitative Framework
AXA IM is committed to reinforcing ESG integration by continuously increasing the coverage in terms of asset classes, developing ESG research and data solutions available to investment teams and reinforcing its own internal research capabilities.
We believe an ESG scoring system is a necessary step to synthetize all material ESG information to further discriminate between thousands of issuers. It is also the starting point to assess the ESG quality of an issuer or of a portfolio relative to its benchmark or peers.
Therefore we have developed proprietary scoring methodologies for corporate and sovereign issuers relying on a common framework built around the three pillars: Environment (E), Social (S) and Governance (G).
Why did we develop our own proprietary scoring systems ?
As of today, there is no market standard for ESG scoring. Thus, we believe an internal model can add value to clients by bringing together best of breeds and mitigating providers’ biases.
Based on our three ESG data providers (MSCI, VIGEO and Sustainalytics) and public data (OECD, World Bank, UNESCO) we are able to provide an ESG score for 7200 issuers and 100 countries.
What are the key objectives of our ESG scoring framework?
Our ESG Scoring Framework has a double objective:
- Enhance sharpness of the ESG assessment by providing a better balance between ESG Impacts and Materiality versus ESG Disclosures and Management Policy.
- Bring value to the investment decisions, while preserving portfolio core diversification, and being transparent to our clients.